How does real estate seasonality affect home sales?

Did you know that seasonal patterns affect the housing market? Experts point out that real estate seasonality is real – transactions and home prices usually rise above the usual market trend in summer and slow down in winter. This seasonal fluctuation influences both housing demand and supply. The seasons of the year can significantly impact the price you pay or ask for your home as a seller, sometimes by as much as up to 10%.

What is real estate seasonality? How does it influence home sales?

Seasonality in real estate means that the market naturally changes at different times of the year. For instance, there’s typically higher demand for beachfront properties in the summer, while sales often slow down during the winter.

Nationwide, seasonal trends in real estate are influenced by factors such as the holiday season and the school year. Families with children often prefer not to relocate during the school year. They generally opt to move during summer when there’s more time and a fresh start aligns with the new school year. 

Studies indicate that the busiest moving times are typically in June, July, and August. As per the National Association of Realtors, October and December stand out as the least active months in real estate. March is the optimal period for achieving a swift house sale.

Conversely, fewer people move during the holidays (November to January) due to added stress amid family obligations, end-of-year deadlines, and unpredictable weather conditions.

Does location affect real estate seasonality?

Housing market seasonality differs across locations in the United States, with each market having its unique characteristics. For instance, cities like Phoenix see increased activity in winter. This is largely due to a snowbird effect. Many people from regions such as the Northeast relocate or buy second homes. Conversely, in cities like Denver, cold weather slows down the usual pace of home sales.

Whether you are a home buyer or seller, it’s important to understand how seasons affect your local housing market. The best way is to talk to a knowledgeable broker or real estate agent. They can share market data for your specific area, showing monthly sales price trends. By comparing different months and years, you can spot when prices are high or low – helping you find potential discounts or a good price for your house.

How can I take advantage of real estate seasonality as a buyer?

As mentioned, seasons affect supply and demand which in turn have a significant impact on the dynamics of the housing market.

During the summer, which is typically one of the busiest moving times of the year, there’s a surge in demand as people are more inclined to buy homes. This increased demand results in heightened competition among buyers. With more people looking to buy homes, the number of available houses on the market tends to decrease. As a result, home sellers may have more leverage, leading to higher prices.

On the other hand, the winter months often experience lower demand in the housing market. Fewer people want to deal with the hassle of moving during the holiday season or in cold weather conditions. As a result, there’s typically a decrease in the number of buyers actively looking for homes. During these low-demand periods, sellers may struggle to attract offers and may be more willing to negotiate on price. Buyers can take advantage of this situation to secure better deals and potentially obtain significant discounts on housing prices.

As a homebuyer, you can strategize your purchasing decisions. Once you know your market’s seasonal patterns, don’t hesitate to buy when it’s less busy. You can snag your dream home and save money. With fewer buyers, there’s less competition, and sellers may be more willing to negotiate. This means you’re less likely to deal with bidding wars or paying above the asking price. By being aware of when competition is high or low, you can time your home purchase to optimize the chances of finding the right home at the best possible price. 

How can I take advantage of real estate seasonality as a home seller?

In an ideal situation, the housing market’s seasonality would always work in your favor: buy a house in the best winter months and sell in the best summer months. 

However, reality isn’t always that simple. When you sell a house, you’re most likely also buying one. While you can generally pinpoint the best months to sell, you also need to consider your buying plans.

If you don’t need the money from selling right away to buy your next home, it might be smart to buy in winter, arrange short-term living elsewhere, and then sell in the spring season to maximize the trade between selling and buying.

Key takeaway

Seasonality plays a significant role in impacting property values alongside business cycles, market forces, mortgage rates, and economic conditions. Knowing how real estate values change with the seasons is vital for maximizing your property’s appeal and value. Whether you are buying or selling your home, you must research the best or worst months to buy or sell. Know your real estate market, grasp what influences seasonality, and consult a good real estate broker or agent for more insights. And, once you understand your market’s seasonality, don’t hesitate to act quickly. Don’t wait for a convenient or free time. It could cost you dearly. 

Written by Ramona Sinha. March 8, 2025

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.